Indigenous factsheet: Superannuation

What is super?

Superannuation (super) is a way of saving money while you
are working so that you and your family will have money when
you retire.

Your boss pays your super into a fund and it is the fund's
job to look after this money until you retire.

Super basics

Super is on top of what you earn - By law, if
you are over 18 and earn more than $450 per month (before tax),
your boss must pay an extra 9.5% on top of your wages into a super
fund. This is called the super guarantee. So, if you earn
$25,000 per year before tax, your boss must pay an extra $2,375
into your super fund.

Watch your money grow - During your working
life, your super will grow so that you will have money for
retirement. The super fund will take out fees and charges for
administration and any insurance, as well as tax.

MySuper - If you don't choose a super fund,
your boss must pay your super to a fund that offers a MySuper
option. This means you'll pay lower fees and won't be paying for
services you don't need.

Insurance - Many super funds offer insurance
for an extra fee so your family can get some money when you pass
away or are too sick or injured to work.

Consolidating super - If you have had more
than one job, you might also have more than one super account. It
is a good idea to speak to someone like a financial counsellor to
find out your options if you want to put all your super into one
account to save on fees.

Case study: Aunty Betty finds lost super

I thought I had some super from when I was working, but I
couldn't remember where it was or how to find it. I signed
up for a myGov account, linked it to the ATO and all
these super accounts came up,
even ones I had years ago.

One of the accounts had $37,000! Now I can finally take
that holiday I've been dreaming of … turn this lounge into
a real hammock!

Tip: Save money by giving your super fund your tax file
number

Make sure your super fund has your tax file number (TFN) to
avoid paying more tax than you're supposed to. If you don't have a
TFN, or can't remember it, call the ATO's Indigenous Helpline on 13
10 30.

When can I get my super?

Usually, you won't be able to get your super until you turn a
certain age and retire. To be retired, you must work less than 10
hours a week.

Have a look at this table to see how old you need to be to
get your super.

Your date of birth

Age you can get your super

(Preservation age)

Before 1 July 1960

55

1 July 1960 - 30 June 1961

56

1 July 1961 - 30 June 1962

57

1 July 1962 - 30 June 1963

58

1 July 1963 - 30 June 1964

59

From 1 July 1964

60

What if I need to get my super
early?

You can only get your super early in very limited
circumstances:

Incapacity - you are not able to work because
of a physical or mental medical condition.

Severe financial hardship - you have received
Centrelink benefits for 26 continuous weeks and are still not able
to meet your immediate living expenses.

Compassionate grounds - you need to pay for
medical costs because you are seriously ill or have a severe
disability.

Terminal medical condition - you have an
illness or injury and doctors have told you that you are likely to
pass away within 2 years.

Talk to your super fund or get help from a financial counsellor
if you need to get your super early. You can also contact
Centrelink's Indigenous Call Centre on 1800 136 380 or visit humanservices.gov.au.

Tip: Avoid super scams

Stay away from people who tell you they will help you get your
super early for a fee. These are scams. Some people have lost all
their super savings and risked paying extra tax because they got
caught up in one of these scams. Report anyone who tries to get
your super out early for a fee to ASIC's Indigenous Help Line on
1300 365 957.